Google Finance, Govt, Policy and Business Issues Forum

Everyone suspected that the investors, founders and early employees of YouTube made tidy sums when it was acquired by Google for $1.65 billion in stock late last year.

But until yesterday, few knew just how tidy those sums were. The answer, which Google delivered in a filing with the Securities and Exchange Commission, is now in: The sums are big enough to spark a new wave of envy across Silicon Valley.

the third founder left early to go back to school. hope he finishes his degree now that he doesn't have to worry about making the tuition payment...

>> YouTube seems to make no financial sence, yet Sequoia backed both Google and YouTube. They probably know something all of us do not.

yeah they do know somthing: Sequoia sold it to Goog and made a killing :).

As other have pointed out, companies do make mistakes, and sometimes they buy just not to have others buy them. Maybe Youtube on Yahoo's hands would have given Y! an edge. That can't be good from G's perspective.

Sequoia Capital used shareholder money from GOOGLE stock to pay for YouTube. I think they picked up $400 million from the Youtube sale.

Start a company "ABC". Let investors invest in it. Start cashing out money via "stock selling". Get "ABC" company to buy another company for a ridiculous price, lets call this firm "CBA". Get a huge chunck of cash immediately, plus continue selling GOOGLE stock. ;)